Value Stream Mapping October 2016

Agenda Introduction & Expectations Who are we? Who are you? Spotting Waste within the value chain- activity Value Stream Mapping– The theory Overview of Value Stream: “Why VSM” ? Map process : “AS IS” Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization Example 1 Example 2 Value Stream Mapping simulation Game Sofia?

Who are we? Sofia Albohaithi Kostas Kefalakis Lean Manager Northern Europe Kostas Kefalakis Global Lean Manager Voice over who we are, what are roles entail- both

Outcomes/ Expectations Key expectations Kostas? To lead and I make note of key expectations?

Ball game - 5 General rules Kick-off round Create a process to pass over the ball within your team (team of min. 5) You can‘t pass the ball to the person next to you Everybody in your team must have had contact to the ball The ball must return to the person who started with it The ball must travel through the air Sofia

Waste can be divided into 7 (+1) types Over information/production Transport/information transfer Unused potential Inventory Motion Defects Over processing/unsuitable methods Kostas Waiting

Functional Segmentation An image instead of words… what’s going wrong? Functional Segmentation (Task bundling/ specialization/ spatial seperation/ department thinking) Media breaks and paper-based infos Push Connections (Lack of demand-orientation and lack of coordination) Big lots (Binder tradition) Serial Processing (In large lots with many interfaces) kostas

Uses and goals of value stream mapping (VSM) Added value of using value stream mapping Holistic view Process mapping from a bird’s eye view Common process understanding Redesign the value stream Uncover weaknesses / potential Alignment with LEAN principles Restructuring the value chain Increasing competitiveness Reducing throughput time (TPT) Increasing performance level kostas

What is value and the value stream? This is the usage the customer is willing to pay for Value creation is increasing the value from raw materials up to the end product Value stream Contains all activities that are necessary to bring one or more products from raw materials into the form desired by the customer kostas Mechanical manufacturing Pre- assembly Final assembly Supplier Customer Value creation steps

Concentration of value generation Reduction of throughput time (TPT) Chain of effects of value stream mapping Process step 1 Process step 2 Process step 3 Process step 4 Process step x Process optimization with the support of the tool value stream mapping From analysis to optimization: Concentration of value generation Reduction of throughput time (TPT) Value Waste kostas Higher quality Better service Improved flexibility Smaller stocks Reduced complexity Lower costs Customer Company

Agenda Game tbc Introduction Who are we? Spotting Waste within the value chain- activity Value Stream Mapping– The theory Overview of Value Stream: “Why VSM” ? Map process : “AS IS” Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization Example 1 Example 2 Value Stream Mapping simulation Game tbc

AS-IS value stream mapping AS-IS value stream analysis Systematic optimization of a value stream Process structure on the way to the target value stream AS-IS value stream mapping AS-IS value stream analysis Value stream VISION detached Zero line in project Uncovering weaknesses Green field approach (free of restrictions) Value stream TO-BE 1 (Implementation step 1 of x) sofia Quick wins first! Taking restrictions into consideration

AS-IS- Value Stream Map VSM workshop – Brown-paper approach Document flow AS-IS- Value Stream Map sofia

The weakness analysis follows the AS-IS map sofia

Agenda Game tbc Introduction Who are we? Spotting Waste within the value chain- activity Value Stream Mapping– The theory Overview of Value Stream: “Why VSM” ? Map process : “AS IS” Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization Example 1 Example 2 Value Stream Mapping simulation Game tbc

Product Development Project overview Key Improvements A product requires development loops Development  Prototyping  Assembly  Test The average development loop time is 6 weeks Teams can go through 30 loops in one project Identified key value creation points Identified 26 issues/wastes Created 10 solutions & implemented 8 Eliminated ‘throwing over the wall’ communication, rework & firefighting BEFORE Potential Impact ~30% time saving per dev. loop Created a communication platform with clear roles & responsibilities confirming development loop target, timeline responsibilities, outcomes & learnings Created smoother flow of development loops by creating a concurrent schedule 6 Weeks kostas AFTER 4 Weeks

Agenda Current VS future state VSM Introduction Who are we? Spotting Waste within the value chain- activity Value Stream Mapping– The theory Overview of Value Stream: “Why VSM” ? Map process : “AS IS” Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization Example 1 Example 2 Value Stream Mapping simulation Current VS future state VSM

Value Stream Mapping Game October 2016

Game structure Architects Engineers Builders Max Time: 45 Minutes Design Engineers Check Builders Build Max Time: 45 Minutes

Game Structure – Steps Step 1: Orientation Together you need to build a tower Step 2: Setup Split group into 3 teams, put separator pinboards in between each team – handout instruction sheets to each team (next page) Step 3: Play Observe & time how long each process takes. Game ends Step 4: Video (map) Show video on how to map the process Step 5: Map Together the team maps the entire process Step 6: Video (waste) Show video on identifying wastes in processes Step 7: Waste Individually each person writes red post-its of wastes observed Step 8: Vision state Together discuss how to create vision state Step 9: Run game again (optional) Play game again in new state

Architects – Instructions Responsibilities Receiving customer requirements Designing the Marshmallow Tower Communicating your design specifications to the Engineering group Customer Requirements: Customer wants the tallest possible spaghetti tower with a Marshmallow on top Measurement starts from the ground up to the Marshmallow 0-30cm: Poor customer satisfaction 30-40cm: Average customer satisfaction 50-60cm: Good customer satisfaction 60+cm: Great customer satisfaction Material Budget: 20 pieces of spaghetti 1 meter/yard of string 1 meter/yard of tape 1 marshmallow Communication rules: You are allowed to communicate only via paper

Engineers – Instructions Responsibilities Receiving design specifications from Architects Checking design against structural requirements (example below) Creating instructions on how to build the marshmallow tower (for the builders) Communicating instructions to the builders Structural Requirements: Minimum 2 spaghetti sticks are required per column (vertical spaghetti not horizontal spaghetti) Minimum 3 cm wide tape required to connect any two parts Structure is not allowed to have support structure apart from the ground (no taping to table legs or walls) Eg: Communication rules: You are allowed to communicate only via paper You can only start your communication with architects after they start communicating with you 1cm tape 3cm tape

Builders – Instructions Responsibilities Testing structural capability (Test budget: of 1 marshmallow 10 spaghetti sticks, 50cm tape, 50cm string) Receiving building instructions from Engineers Checking building design & instructions against building requirements (below) Building the Marshmallow Tower as per instructions Building Requirements: When using 2 pieces of spaghetti together – You need to use tape to connect them in the middle (see diagram) You can build the tower only as per Engineering instructions You need to get approval from Engineering if you want to modify the design or instructions Communication rules: You are allowed to communicate only via paper You can only start your communication with engineers after they start communicating with you tape spaghetti

Questions to ask ourselves What can we remove? What control steps can we limit? What can we do concurrently? How do handovers take place? Are there any air gaps? Is there information starvation? Is there a skill bottleneck? Are we repeating processes?

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Video? Pre-read http://theprocessconsultant.com/videos/